Rupee flat

Rupee closed firm at 110.57 against the US dollar for the second straight session on Tuesday, traders said. The domestic currency was trading at 110.57/110.58 in the interbank foreign exchange market.

“Rupee saw a very little change in its value on mild dollar demand from importers,” a foreign exchange dealer said.

Traders expect rupee to trade stable at least in the near-term. The local unit is, however, expected to depreciate by five percent in the second half of 2018 on balance of payments worries, they said. The current account deficit is forecast to stay higher at 5.3 percent of gross domestic product in FY2018.

Rupee, however, continued to appreciate in the open market. It strengthened to 111.40/111.70 for buying and selling against the greenback. Rupee closed at 111.50/111.80 in the previous session.